The WACC of Global Vectra Helicorp Ltd (GLOBALVECT.NS) is 8.9%.
Range | Selected | |
Cost of equity | 13.6% - 17.3% | 15.45% |
Tax rate | 33.0% - 40.7% | 36.85% |
Cost of debt | 4.0% - 7.5% | 5.75% |
WACC | 7.6% - 10.2% | 8.9% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.81 | 1.01 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.6% | 17.3% |
Tax rate | 33.0% | 40.7% |
Debt/Equity ratio | 1.23 | 1.23 |
Cost of debt | 4.0% | 7.5% |
After-tax WACC | 7.6% | 10.2% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
GLOBALVECT.NS | Global Vectra Helicorp Ltd | 1.23 | 1.6 | 0.89 |
531471.BO | Duke Offshore Ltd | 0.01 | 1.39 | 1.38 |
5UL.SI | Atlantic Navigation Holdings (Singapore) Ltd | 0.01 | 0.28 | 0.27 |
DEEPENR.NS | Deep Energy Resources Ltd | 0.03 | 0.48 | 0.47 |
M&G.KL | Marine & General Bhd | 3.56 | 0.93 | 0.28 |
OILCOUNTUB.NS | Oil Country Tubular Ltd | 0.09 | 1.45 | 1.37 |
PVT.VN | Petrovietnam Transportation Corp | 0.89 | 1.09 | 0.7 |
SEAMECLTD.NS | Seamec Ltd | 0.15 | 0.33 | 0.3 |
WINS.JK | Wintermar Offshore Marine Tbk PT | 0.24 | 0.56 | 0.48 |
WPC.SI | Vallianz Holdings Ltd | 4.62 | 0.57 | 0.14 |
Low | High | |
Unlevered beta | 0.4 | 0.57 |
Relevered beta | 0.72 | 1.01 |
Adjusted relevered beta | 0.81 | 1.01 |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for GLOBALVECT.NS:
cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.